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Osborne: China and UK 'must work together'

14 October 2013 Last updated at 09:04 BST

George Osborne has said it is important for Britain and China to take "the next big step together... working together for both our benefit".

The chancellor's comments came as he continued a week-long trade trip to China, during which he hopes to persuade more Chinese companies to invest in the UK.

Speaking to BBC Breakfast, Mr Osborne also defended foreign investment in British energy providers, saying that this would bring down prices in the long run.

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